Examining Consumers’ Continuance Intention and Brand Loyalty in Islamic Insurance (Takaful)

Norazah Mohd Suki
Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia

Mohd Anas Mentoh
Labuan Faculty of International Finance, Universiti Malaysia Sabah

Norbayah Mohd Suki
School of Creative Industry Management & Performing Arts, Universiti Utara Malaysia


The goals of this research are threefold: (1) to examine intrinsic motives, extrinsic motives, and satisfaction impact upon consumers’ positive electronic-word-of-mouth (E-WOM) in respect of Islamic insurance (Takaful), (2) to investigate the influence of positive E-WOM and satisfaction on consumers’ continuance intention in respect of Takaful, and (3) to explain the effect of satisfaction and continuance intention on consumers’ brand loyalty in respect of Takaful. A quantitative approach was applied through a self-administered questionnaire to obtain data from 300 Takaful subscribers in the Generation Y group. They were pre-screened and identified through their online postings, having any Takaful policy, and being referred to by Takaful advisors and operators. Empirical results of the Partial Least Square-Structural Equation Modelling (PLS-SEM) approach discovered that intrinsic motives, extrinsic motives, and satisfaction affect consumers’ positive E-WOM regarding Takaful. Additionally, the effect of positive E-WOM on consumers’ continuance intention in Takaful is found to be significant. Satisfaction emerges as the strongest predictor of consumers’ continuance intention in Takaful. Further, the study reveals that satisfaction influences consumers’ brand loyalty in respect of Takaful. Approachable and pleasant Takaful frontline advisors/agents who can provide a prompt response to consumers, are vital in the process of increasing consumer satisfaction and boosting loyalty to their brand. Understanding positive E-WOM, consumers’ satisfaction, continuance intention, and brand loyalty in respect of Takaful permit Takaful operator to be more active and responsive in the online medium on a daily basis, and thereby be in a position to encourage more interaction and response among consumers with regards to their Takaful participation. This would prolong the positive relationship between the Takaful operators with their consumers. Directions for future research are suggested.

Keywords: Brand loyalty, Continuance intention, E-WOM, Motives, Satisfaction